(Yicai Global) Jan. 17 -- The Society for Worldwide Interbank Financial Telecommunication, one of the world's largest cross-border payment services providers, will set up a wholly foreign-owned unit in Beijing to provide localized services to Chinese users.

The Belgian firm has agreed a memorandum of cooperation with the capital's local government, the People's Bank of China said in a statement. The sole proprietorship company will join the China Payment and Clearing Association and the country's central bank will supervise and manage its operations.

SWIFT has also penned a letter of intent with China International Payment Service, the operator of the country's cross-border interbank payment system, to deepen cooperation in the development of related services for users.

The company's establishment of a wholly-owned subsidiary in Beijing marks new progress in the further opening-up of the service industry and the improvement of the open economy, said Fan Yifei, deputy governor of the PBOC, adding that it is an important step forward for the central bank's management of financial infrastructure.

The new unit will help SWIFT to expand its Chinese user base while improving service capabilities and compliance, said Gottfried Leibbrandt, chief executive of SWIFT. The company will grasp the opportunity to closely communicate with Chinese regulators and institutions to help the country implement strategies related to opening-up and the Belt and Road Initiative.